Bearish economist Gary Shilling is ... bearish, flatly predicting another recession in 2012 as housing inventories continue to drag. Not surprisingly, his favorite picks are Treasurys - the longer term the better. "I think they're going to 3%," he says of the 30 year, currently yielding 4.2%.

So we go into another recession and housing rolls over which would mean more bailouts, more stimulus, and more money printing. Our deficit balloons as tax revenues fall and government spending surges, and somehow treasuries rally? That makes no sense but could somehow actually happen. What a market this is!

yea... shilling is wrong. the fed accounts for 70% of bond purchases right now.. when they stop i expect the yield to rise and prices to fall.. dlbs is on my radar; will be watching the technicals on it like a hawk. june 30th can't come fast enough...